III Information Services Group Inc.

European Firms Seek New Ways to Modernize Mainframes

Europe’s mainframes are undergoing a significant transformation as enterprises pursue ways to more effectively integrate their legacy systems with emerging technologies, according to a new research report published today by Information Services Group () (Nasdaq: ), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Mainframes – Services and Solutions report for Europe finds European enterprises are moving toward hybrid modernization strategies that strike a balance between maintaining mainframe robustness and leveraging cloud agility. Companies across the continent demand solutions that combine managed modernization, cloud migration and cost-effective optimization, the ISG report says.

“Some providers are taking an AI-first approach to mainframe modernization,” said Matthias Paletta, director, Technology Modernization, for ISG. “They are using the capabilities of GenAI to foster maintainable, object-oriented designs and boost developer productivity.”

This growing emphasis on automation, including leveraging AI and ML, signals a pivotal shift toward enhancing efficiency and precision in migration and testing processes, the ISG report says. The aim among providers is to go beyond employing GenAI for isolated innovations and to use it as a springboard for executing a transformative leap in mainframe modernization, the report says.

The strategic embrace of AI and automation technologies by providers and the pursuit of more intelligent, efficient modernization processes are indications of a deepening integration of cutting-edge technologies, the ISG report says. According to the report, there is a shared goal among providers to revolutionize efficiency and innovation in legacy systems transformation by strategically integrating GenAI in all aspects of the transition, from automated code conversion and enhanced testing protocols to data cleansing and post-migration optimization. High on the aspirational list for many providers is achieving near-perfect accuracy in language conversion efforts, ISG says. Ultimately, the goal is to fundamentally change how legacy systems are perceived, managed and evolved, the report says.

“Enterprises must invest in mainframe modernization efforts to reduce technical debt, enable AI technologies, allow data access for better business analytics and enhance compliance,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “In short, they are seeking to enhance their overall business agility.”

The report also examines how mainframe outsourcing and mainframe-as-a-service (MFaaS) can offer short-term cost savings and help clients integrate with cloud infrastructures.

For more insights into the mainframe modernization challenges facing enterprises in Europe, including skills shortages and security concerns, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing .

The 2024 ISG Provider Lens™ Mainframes – Services and Solutions report for Europe evaluates the capabilities of 48 providers across five quadrants: Mainframe Optimization Services, Application Modernization Services, Mainframe as a Service (MFaaS), Mainframe Operations and Mainframe Application Modernization Software.

The report names TCS as a Leader in four quadrants, while Capgemini, DXC Technology, Infosys and Kyndryl are named as Leaders in three quadrants each. Atos, Cognizant. HCLTech and Wipro are named as Leaders in two quadrants each, while Accenture, Avanade (Asysco), AWS, Eviden (an Atos Business), Google, Heirloom Computing, mLogica, OpenText and TmaxSoft as named as Leaders in one quadrant each.

In addition, DXC Technology, LTIMindtree and TSRI are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

A customized version of the report is available from .

In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2024 among mainframe services and solutions providers. HCLTech earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the , the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Mainframes – Services and Solutions report for Europe is available to subscribers or for one-time purchase on this .

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this .

About ISG

ISG (Information Services Group) (Nasdaq: ) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit .

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16/04/2024

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